November 19, 2013
Accenture and ServiceSource Join Forces to Improve Recurring Revenues Generated By Technology Companies
SAN FRANCISCO; Nov. 19, 2013 – Addressing a long-standing industry challenge, Accenture (NYSE: ACN) and ServiceSource® (NASDAQ: SREV) have formed a global alliance to make it easier and faster for companies, such as manufacturers of computer software and equipment and medical technology devices, to generate and retain more recurring revenues from their customers. These revenue streams flow from various types of agreements such as hardware and software maintenance and support contracts, subscriptions offered by software-as-a-service providers, and warranties for health and life science equipment.
These types of agreements are sold initially by the original sales teams, but then must be renewed periodically to ensure that companies continue to deliver the service and collect the revenue. For the past two decades, however, renewal processes and related data have become overly complex, disaggregated, and time-consuming to navigate. As a result, companies often have not invested the time needed to pursue these ongoing revenue opportunities with existing customers, and when they have, the results have generally been poor.
“Accenture and ServiceSource recognize the challenges associated with the recurring revenue sales process and see a big opportunity for technology companies to drive more recurring revenue – potentially $30 billion per year according to ServiceSource analysis – if they can transform this increasingly strategic piece of their business,” said Mike Smerklo, chairman and CEO of ServiceSource. “Most companies incorporate a significant recurring revenue component for much of what they sell including renewals for hardware, software, Software as a Service and other subscription services. In fact, these renewals often account for 30-40 percent of a technology company’s revenues and as much as 50 percent of its profits.”
Working together, the two companies will combine leading technology, services and best practices to drive clients’ top-line results around existing and emerging recurring revenue streams. Accenture will deliver capabilities in systems integration, consulting, business transformation, and predictive analytics.
ServiceSource will deploy Renew OnDemand™, its cloud-based application that provides the data management, sales automation and sales analytics capabilities needed to maximize recurring revenue. Together, Accenture and ServiceSource will create a comprehensive “Recurring Revenue Blueprint” to help technology companies capitalize on these opportunities, including:
- Innovative industry practices for targeting recurring revenue and renewal opportunities, data management, value selling and minimizing churn;
- Integration of existing systems and data including customer relationship management (CRM), enterprise resource planning (ERP), and billing applications;
- Sales transformation for incorporating new recurring revenue and renewal processes and practices into existing sales operations;
- Technology solutions based on ServiceSource’s Renew OnDemand, the only cloud application purpose-built to maximize recurring revenue; and,
- Selling and enablement managed services to enhance coverage and performance in recurring revenue.
ServiceSource International, Inc. (NASDAQ: SREV) is the global leader in recurring revenue management. Renew OnDemand™, the only cloud application built specifically to grow recurring revenue, automates a highly valuable but typically manual business process. By leveraging big data to give companies a complete view of their customers, Renew OnDemand and our proven services drive higher subscription, maintenance, and support revenue, improved customer retention, and increased business predictability.
With over a decade of experience focused exclusively on growing recurring revenue, ServiceSource’s products and services are based on proven best practices and global benchmarks. Headquartered in the Cloud Corridor of San Francisco, ServiceSource® manages over $9 billion in recurring revenue for the world’s largest and most respected technology companies. ServiceSource renews a customer contract every 47 seconds through engagements in more than 150 countries and 40 languages. For more information, please go to www.servicesource.com.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 275,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the markets in which the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company’s pricing estimates do not accurately anticipate the cost, risk and complexity of the company performing its work or third parties upon whom it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be unprofitable; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company’s business could be materially adversely affected if the company incurs legal liability in connection with providing its services and solutions; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; outsourcing services and the continued expansion of the company’s other services and solutions into new areas subject the company to different operational risks than its consulting and systems integration services; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; the company might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; changes in the company’s level of taxes, and audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
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